Substitute Senate Bill No. 440 (sSB440 File No. 314) proposes significant changes to the Certificate of Need (CON) process for health care facilities in the state. The bill expands the scope of transactions requiring a CON, including those involving private equity companies acquiring controlling interests in health care facilities or large group practices, and the relocation of certain outpatient services outside their current municipality. It also specifies situations where a CON is not required, such as for federal government-operated health care facilities, private practitioner offices, and facilities operated by religious groups for spiritual healing. The bill exempts the replacement of certain medical equipment from the CON requirement if it was previously approved and introduces a new fee structure for CON applications. It also details the requirements for public notice prior to filing a CON application and repeals and substitutes Section 19a-639a of the 2024 supplement to the general statutes, effective October 1, 2024.

The bill also streamlines the CON application process by allowing for pre-application informational meetings, shortening review periods, and introducing an expedited review timeline. It shifts the responsibility for conducting cost and market impact reviews from the Health Systems Planning Unit to the Attorney General's Office, with the Attorney General considering factors such as market share and service quality when reviewing hospital ownership transfers. The bill mandates the hiring of independent consultants for economic analysis and prohibits insurance companies from exercising control over health care institutions in which they invest, effective October 1, 2024. The bill was reported favorably by the Public Health Committee with a vote of 36 to 1 on March 21, 2024.

Statutes affected:
Raised Bill:
PH Joint Favorable:
File No. 314: